Taiga is the first synthetic asset protocol on Karura, the DeFi hub of Kusama that is not dependent on a specific parachain. Its integration will open up maximum possibilities for the use of uniform assets in the Kusama ecosystem.
How Taiga Works
Taiga operates on the Stable Asset system, providing extremely efficient trading and low risk through the use of uniform assets with close value pegs, offering the following capabilities:
| Function | Description |
|---|---|
| Stable Swap | A highly efficient liquidity pool for exchange |
| Stable Asset | A synthetic asset backed by a basket of assets with the same value peg (e.g., Taiga's "taiKSM" backed by KSM and LKSM) |
Synthetic assets can be used in a wide range of cases (e.g., as collateral, for liquidity bootstrapping, cross-parachain transfers), while maintaining the advantages of the underlying assets (e.g., yield from liquid staking, rewards for participating in crowdloans).
Karura offers a suite of financial applications, including a trustless staking derivative (liquid KSM), a multi-collateralized stablecoin (kUSD), and an AMM DEX (Karura Swap). Taiga is integrated into the Karura ecosystem, providing DeFi primitives in the form of highly usable synthetic assets.
As recipients of the Web3 Open Grant and the Acala Ecosystem Grant, the team can utilize technical, financial, and marketing resources to promote Taiga's debut in the Kusama ecosystem.
Benefits of taiKSM
taiKSM is the first synthetic KSM on Kusama, created from KSM and LKSM. Taiga is ready to accept requests to liquidate positions in liquidity pools and improve the usability of KSM and many other types of homogeneous assets (e.g., stablecoins, BTC, ETH).
Benefits of taiKSM:
- Liquidity providers contributing LKSM and/or KSM to the taiKSM pool experience minimal impermanent loss
- taiKSM can be used as collateral to issue kUSD, while still retaining the underlying rewards obtained from liquid staking and/or participation in crowdloans
- Traders can benefit from low slippage in trading KSM pairs supported by the taiKSM pool
- The common liquidity pool of taiKSM can be directed to pair with the project team's native token to help bootstrap LP pools and generate trading fees
In conclusion, taiKSM represents a significant step forward in the DeFi ecosystem, providing users with a unique opportunity to participate in Kusama staking without having to give up the liquidity of their assets.
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